Question: 1. Briefly discuss the ways a realistic budget will benefit the owner of The Vegan Bakery versus having no budget at all. Be sure to use The Vegan Bakery as the company and any specific product details in your explanation.
2. Prepare a sales budget for the LA The Vegan Bakery store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, November, and December, and a total for the quarter. Use one-half of the Valentine's Day sales as the basis for a usual day in the new quarter. Use 30 days for each month. Calculate the total sales for each month for October, November, and December.
3. Create three (3) new products, one (1) for each of the three (3) holiday seasons in the 4th quarter. Estimate the sales units, sales price, and total sales for each month. Describe the assumptions used to make these estimates. Include an overview of the budget in the report, presenting the actual budget as an appendix with all data and calculations. Add these amounts to your sales budget.
4. The owner of The Vegan Bakery is interested in preparing a flexible budget rather than the static budget she currently uses. He does not understand why, when sales increase, his static budget often shows an unfavorable variance. Explain how a flexible budget will overcome this problem. Use the details of your newly prepared budget for the 4th quarter of 2016 to address her concern. 5. Imagine that The Vegan Bakery is facing a financial challenge that is causing the actual amount of money that it spends to become significantly more than its budgeted amount. Include a discussion of your own unique cause of the overspending. Explain the corrective actions needed to address these challenges.